Also in Ukraine

“The biggest problem is the shortage of skilled workers”

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08.03.2024 18:59

Around 1000 Austrian companies are active in Ukraine, 200 have their own local branches. The Chamber of Commerce informs them about the security and economic situation in workshops.

"The image of Ukraine portrayed in the media is too drastic. Life in the capital Kiev is completely normal. It's just as safe to go for a walk in the evening as it is in Klagenfurt," explains security expert Axel Wochinger, Managing Director of Result Group. "It's up to 700 kilometers to the front, so of course the situation is different there."

The company, which specializes in security consulting for companies, divides the country into three "zones". Around Kiev, completely normal economic life is possible, in the border area with Belarus and on the Black Sea, increased danger is to be expected and in the frontline area, nothing is working at the moment.

Ukraine under military pressure
"Unfortunately, the second Russian offensive is going well, Ukraine is coming under increasing pressure and urgently needs money, ammunition and technology," says Wochinger, not painting a rosy picture. "The current discussion about the 'Taurus' cruise missiles is also taking place under the motto 'too little, too late'. If the Russian train connection is in the front area, it doesn't help much either." The Russian information war on the internet is also particularly successful, contributing to the division of Western society.

The conflict in Ukraine

  • Annexation of Crimea on 18.03.2014
  • Russian invasion on 24.02.2022
  • 10,582 civilians killed according to the UN Commission on Human Rights
  • 31,000 Ukrainian soldiers killed

And in between all of this, the Ukrainian economy continues to run - with Austrian involvement too. "Around 1000 companies are active there, 200 have their own local branches. But the mood is relatively good," explains Georg Weingartner, business delegate in Kiev. "In a survey, over 90 percent are planning no or only a slight reduction in activities. They don't see any major changes in the next six months."

Skills shortage is the biggest problem
The biggest problem for the economy is not the war and the fighting. "Between migration and increased mobilization for the Ukrainian army, companies are finding it increasingly difficult to find skilled workers, which is hampering production," says Weingartner. "There is also a decline in orders, but energy and communication are no longer a problem."

The participants of the workshop, which is organized by the Chamber of Commerce in all federal states, are focusing primarily on reconstruction. "Of course, there is no realistic time frame yet. We mainly support companies with logistical issues and securing orders," explains the business delegate.

It is immensely important for Ukraine that economic activities continue. "The war costs a lot of money and is also financed by taxes. If the economy is doing well, Ukraine is less dependent on financial support," explains Oksana Myronko, European Business Association. "We support a good 900 European companies in their activities - especially in the field of logistics." This is because goods can only enter the country by land and sea - which is why the Black Sea is so contested.

Companies still want to invest
A good quarter of the network is even planning to invest more in Ukraine. "On average, eight million dollars are estimated for the projects," says Myronko. "Some activities were frozen at the start of the war, but were soon resumed." Myronko also sees the shortage of skilled workers as the biggest problem. "After all, companies can reserve 50 percent of their workforce, which then cannot be mobilized," the expert puts into perspective.

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